The data shows that Temu and SHEIN have emerged on the list of application downloads in many countries. In the United States, Spain, Australia, Mexico and other countries, Temu ranks first among the most downloaded shopping applications in iOS and Google Play, and SHEIN ranks second.
Interestingly, Temu, which launched the Spanish site in April this year, successfully jumped to the top of the download list in just a few months, and the original leader SHEIN retreated to the second place under the competition of Temu. In the UK, Temu also ranked first in the number of downloads of shopping apps, while SHEIN ranked fourth.
Recently, Sensor Tower released the store intelligence data in the second quarter of this year, showing that Temu entered the top ten of the global download list for the first time, which is an important breakthrough. Meanwhile, SHEIN’s performance remained solid, ranking 12th.
Although Temu and SHEIN performed well in download volume, it should be noted that Amazon is still the most commonly used shopping application in the United States, Spain and other European and American countries. In order to catch up with Amazon’s local dominance, Temu and SHEIN still need to make continuous efforts.
As a brand that has been deeply involved in the North American e-commerce market for more than ten years, SHEIN has established a mature cross-border e-commerce model. For Temu, which has just started, it is an easy choice to imitate SHEIN’s experience to cross this e-commerce field. This seems to be exactly what Temu did.
Since its launch, Temu has adopted a low-price strategy similar to SHEIN’s, putting many products of the same model on the shelves, and reducing the price to 53%-80% of SHEIN’s, and even the price of some items is lower than 30% of SHEIN’s.
Subsequently, Temu expanded rapidly, striving to occupy a place in the market dominated by SHEIN. In less than a year, Temu has opened 18 sites, including major European and American markets such as the United States, Canada and Britain, as well as emerging markets such as Australia.
In addition, Temu is also vigorously promoting the full hosting model and competing with SHEIN in a differentiated way. This model is welcomed by the upstream supply chain, and also helps Temu to further reduce product prices and gain greater competitive advantage in the price war.
In this regard, SHEIN is also actively seeking solutions. On the one hand, SHEIN has accumulated many years of supply chain advantages. Over the past ten years, SHEIN has built its own unique supply chain model, which enables it to launch new products quickly and provide cheap products, which is the magic weapon for its success.
On the other hand, SHEIN is also actively seeking market transformation. SHEIN realized that with the gradual saturation of the sinking market, the simple low-price strategy may not be able to continue to grow. Therefore, SHEIN is promoting the platform model, testing the water in Brazil, then launching it in the United States and Mexico, and then planning to promote it in many European countries.
Generally speaking, although the competition between Temu and SHEIN is fierce, they both rely on the common advantages of China manufacturing, supply chain and logistics, and also face similar challenges, such as quality control issues, environmental protection issues, and the influence of local giants such as Amazon. In the competition, seeking cooperation and complementarity may be a feasible way for China e-commerce to develop together overseas.
Post time: Aug-25-2023